BENGALURU, Jan 22 – Navi Technologies, the fintech startup founded by Flipkart co-founder Sachin Bansal, has reported a loss of ₹14.26 crore after scammers exploited a vulnerability in its payment system, company and police officials said on Saturday.
The fraud occurred over a two-week period in December, when miscreants posing as customers used a loophole in a third-party payment gateway (TPAP) to manipulate the payable amount after initiating transactions. The scammers used Navi’s app to pay for services such as mobile recharges and EMIs. After initiating payments for amounts like ₹500 or ₹1,000, they altered the payable amount on the TPAP gateway to Re 1.
Despite the modification, Navi’s system recorded the transactions as successful and debited the original amount from the company’s account, vigilance officer Srinivas Gowda explained. “The bug allowed edits to the payable amount after the payment process had begun, which should not have been possible. This loophole was exploited to defraud the company,” Gowda said.
The Whitefield Cyber Crime Police in Bengaluru have registered a case against unidentified individuals and launched an investigation into the fraud.
Founded in 2018, Navi Technologies is Bansal’s venture into financial services after he stepped down from Flipkart, the e-commerce giant he co-founded. The startup has quickly gained traction in the fintech space, offering products like loans, insurance, and mutual funds through its app. Bansal, known for his intense work ethic, revealed last year that he works 80-100 hours per week but does not impose the same expectations on his team. Navi follows a strict work-from-office policy, which he emphasized as crucial for the company’s operations.
“We were very clear that we want to be work-from-office. Work from home was a temporary phenomenon in my mind. It was never a permanent one. We are 100% work from office. Zero work from home,” Bansal said in April 2024. The company has not disclosed the extent of any corrective measures taken yet.
